Traverse City Downtown Development Authority (DDA) board members will discuss conceptual design options for a planned mixed-use parking development on State Street at their 9am board meeting Friday. Board members will also consider approving contracts with two firms to assist with creating a “comprehensive and multi-phased communications plan” for downtown, according to DDA CEO Jean Derenzy. 

State Street Project
Consulting firms Fishbeck and Cornerstone Architects will present early conceptual options for a mixed-use parking development near the corner of State and Pine streets to DDA board members Friday. The firms were hired for nearly $1.6 million in July to provide schematic and construction designs and costs – based on analyzing different options for configuring parking, housing, and retail – for the long-discussed third public parking structure downtown.

According to a project memo provided to board members, “preliminary studies for providing work-force housing options as a component of the proposed west side parking development offer a combination of parking and residential options.” The memo describes two key components to the project, the first being a potential five-level, 60-foot structure at the west end of the alley and Pine Street with a stair/elevator tower to be shared with the parking deck. That Pine Street building could “accommodate up to 31 individual residential rental units consisting of studio, one-bedroom, and two-bedroom options,” as well as retail spaces ranging from 630 to 750 square feet.

Next to that building would be the proposed parking structure on State Street, with the option to have a residential component in that building as well. The structure could potentially accommodate a “mix of unit sizes,” including 475-square-foot studio apartments, two-bedroom “roommate” units approximately 612 square feet each, and two-bedroom “small family” units of approximately 816 square feet. “Depending on the size and mix, the State Street residential component could accommodate between 50 and 70 units,” the memo states. Barrier-free units would be provided on accessible levels to accommodate a range of users, and “access would be from parking structure elevators and stair towers to accommodate both residents and parkers, with security entrances for the residential access.”

The goal for incorporating residential housing into the project is to “provide efficient, attractive units that incorporate sustainable concepts for utilities, operations, and maintenance,” the memo notes. “Green roof concepts, water collection, filtration, and conservation, permeable pavement, green technology (solar, etc.) are all under consideration as the project develops further.”

The grade level of the State Street building could “accommodate a variety of approved uses, inclusive of retail, food service, and other approved uses,” the memo concludes. “The design could accommodate between five and seven grade-level spaces of approximately 500 to 800 square feet each.” Conceptual renderings show the parking deck hosting between 523 and 638 parking spaces, depending on whether housing is included in that structure or not.

DDA CEO Jean Derenzy says the aim Friday is to discuss how the various design concepts fit into the “character of downtown,” as well as the different public-private partnerships that could be included in the project. As a design for the mixed-use development gets refined in the coming weeks, DDA board members and city commissioners will have to consider tradeoffs, like how many parking spaces they’re willing to eliminate to create housing (or vice versa). The consultants are set to deliver a schematic design by the end of this year, which will provide “clarity on the full cost of the project,” Derenzy previously stated. Approximately 30 percent of the building design will be completed in the schematic phase.

Once schematic work is done, engineering and architectural work will “pause until full costs are reviewed with the city commission and community,” according to Derenzy. From there, funding would likely depend on two major steps: bonding the project and including it in the DDA’s TIF 97 plan, which is planned to be extended next year and renamed the Moving Downtown Forward TIF plan. With TIF 97 set to expire in 2027, the DDA is looking at a spring 2024 vote to extend the plan another 30 years to continue downtown operations and maintenance, as well cover an updated list of public infrastructure projects – including the mixed-use parking deck. Bonding the deck and approving the new TIF plan will require city commission approval, with both moves also subject to a public referendum.

Communications Contracts
DDA board members Friday will consider hiring two firms to assist with communications and marketing efforts for downtown.

The contract work will “complement and build upon existing communication efforts by the DDA and is focused on two areas,” according to a memo from Derenzy. “The first is communication support for the DDA’s projects, initiatives, and other general efforts...for example, it would include support in developing an overall communication platform and messages for projects that impact downtown, like the reconstruction of Grandview Parkway.” Derenzy said communications would also support the DDA’s efforts to promote a “parking once” narrative for downtown emphasizing how downtown visitors can park easily – and park just one time – to access all their shopping/dining needs.

“The second focus area will be on tax increment financing (TIF), including information about the history, value, and future goals of TIF,” Derenzy wrote. “Support will include, among other things, developing materials to help educate local leaders and the public on the importance of TIF and its role in our healthy, thriving downtown. It would also include developing communication pieces about the DDA, including a one-page overview of the history, value, and future goals of the DDA.”

Derenzy added: “To be clear to the board and public, communication is one of the most critical pieces for any downtown organization. It is important to have clear and consistent messaging and information on what the DDA has accomplished, where we want to be in the future, and how the board makes decisions. Furthermore, the DDA has not had a brand that builds an identify that clearly communicates its benefits and strengths to potential investors, residents, and visitors...it is also important to note the TIF communication support will be for educational purposes only and will not advocate for or against any potential future ballot initiative.”

Derenzy is recommending entering into two separate contracts to manage the two different focus areas: a $45,000 contract with Bright Sparks Strategies for the development of education tools for TIF 97, and a $90,000 contract with Greenlight for general DDA communications work, including branding initiatives, the Grandview Parkway reconstruction project, and the park-once initiative. The two contracts will be funded by $100,000 from the DDA general fund and $45,000 from the TIF 97 fund, according to the proposal.